Order on the Financial Supervisory Authority's Use of Administrative Penalty Notices for Certain Capital Market Violations

Order on the Financial Supervisory Authority's Use of Administrative Penalty Notices for Violations of Certain Provisions in the Capital Markets Area

Pursuant to Section 257, Paragraph 1, of the Capital Markets Act, cf. Statutory Order No. 1767 of 27 November 2020, and after consultation with the Minister of Justice, the following is enacted:

Scope of Application

Section 1. In cases concerning violations of the Capital Markets Act covered by Section 2, which are not deemed to warrant a penalty higher than a fine, the Financial Supervisory Authority may, in an administrative penalty notice, indicate that the case may be resolved without litigation if the person who committed the violation declares themselves guilty of the violation and declares themselves ready to pay a fine, as specified in the penalty notice, within a specified deadline.

Paragraph 2. The provisions of the Administration of Justice Act regarding requirements for the content of an indictment and regarding the fact that a suspect is not obliged to make a statement shall apply mutatis mutandis to penalty notices.

Provisions Where Violations May Be Resolved by Penalty Notice

Section 2. The following violations of provisions may be resolved by penalty notice, cf. Section 1:

1) Incorrect publication and dissemination of information pursuant to Chapter 5 of the Capital Markets Act and Article 17, Paragraphs 1 and 7, of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (the Market Abuse Regulation), cf. Section 24 of the Capital Markets Act.

2) Failure to submit, incomplete or incorrect submission of information to the Financial Supervisory Authority, cf. Section 25, first sentence, of the Capital Markets Act.

3) Failure to publish, incomplete or incorrect publication, and lack of availability of an annual report or a half-yearly report, cf. Section 26, Paragraphs 1 and 3, and Section 27, Paragraphs 1 and 3, of the Capital Markets Act.

4) Failure to publish, incomplete or incorrect publication of notification of flagging pursuant to Sections 38-40, cf. Section 30 of the Capital Markets Act.

5) Failure to notify the company or the Financial Supervisory Authority of the acquisition or disposal of shares or financial instruments, cf. Section 38, Paragraph 1, Section 39, Paragraph 1, and Section 40, Paragraph 1, of the Capital Markets Act.

6) Failure to notify the company or the Financial Supervisory Authority of transactions carried out by persons discharging managerial responsibilities and persons closely associated with them, cf. Article 19, Paragraph 1, of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (the Market Abuse Regulation).

7) Failure to report, incomplete or incorrect reporting of information on transactions in financial instruments, cf. Article 26, Paragraph 1, first subparagraph, of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.

8) Failure to publish, incomplete or incorrect publication of the acquisition or disposal of the company's own shares, cf. Section 31 of the Capital Markets Act.

9) Failure to publish, incomplete or incorrect publication of reported information pursuant to Article 19, Paragraph 1, cf. Article 19, Paragraph 3, of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (the Market Abuse Regulation).

Acceptance and Payment of the Fine

Section 3. If the fine is accepted within the deadline specified in the penalty notice, further criminal prosecution shall cease. The acceptance of a penalty notice has the same effect as a judgment. The deadline may be extended by the Financial Supervisory Authority upon request.

Paragraph 2. Acceptance is made by returning the signed penalty notice to the Financial Supervisory Authority or by paying the fine.

Paragraph 3. Payment of the fine may be made by depositing the amount into the account number provided in the penalty notice.

Paragraph 4. Acceptance of the fine is not conditional upon payment.

Section 4. When the fine has been accepted, the fine shall be granted enforcement rights pursuant to Section 11 of Act No. 29 of 12 January 2015 on the recovery of debts to the public sector.

Entry into Force

Section 5. This Order shall enter into force on 1 July 2021.

Statutory Journal A
2021 Published on 10 June 2021
4 June 2021. No. 1214.
Ministry of Industry, Business and Financial Affairs, Financial Supervisory Authority, case no. 21-001393 CQ001796

Paragraph 2. Section 3 of Statutory Order No. 186 of 8 March 2011 on the use of administrative penalty notices in the financial sector is repealed.
Ministry of Industry, Business and Financial Affairs, 4 June 2021 Simon Kollerup / Hans Høj 4 June 2021. No. 1214.